Chapter 336

CHAPTER 336-S.F.No. 2828
An act relating to gambling; regulating and
prohibiting certain activities with respect to
gambling; regulating shipment of gambling devices;
providing penalties; amending Minnesota Statutes 1998,
sections 299L.07, subdivisions 2a and 10; 349.12,
subdivision 25; 349.2125, subdivision 1; 609.75, by
adding subdivisions; and 609.76, subdivision 2, and by
adding subdivisions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1998, section 299L.07,
subdivision 2a, is amended to read:
Subd. 2a. [RESTRICTIONS.] (a) A manufacturer licensed
under this section may sell, offer to sell, lease, or rent, in
whole or in part, a gambling device only to a distributor
licensed under this section.
(b) A distributor licensed under this section may sell,
offer to sell, market, rent, lease, or otherwise provide, in
whole or in part, a gambling device only to:
(1) the governing body of a federally recognized Indian
tribe that is authorized to operate the gambling device under a
tribal state compact under the Indian Gaming Regulatory Act,
Public Law Number 100-497, and future amendments to it;
(2) a person for use in the person's dwelling for display
or amusement purposes in a manner that does not afford players
an opportunity to obtain anything of value;(3) another distributor licensed under this section; or(4) a person in another state who is authorized under thelaws of that state to possess the gambling device.
Sec. 2. Minnesota Statutes 1998, section 299L.07,
subdivision 10, is amended to read:
Subd. 10. [TRANSPORTATION OF GAMBLING DEVICES.] In
addition to the requirements of this section, the transportation
of gambling devices into or out of Minnesota must be in
compliance with United States Code, title 15, sections 1171 to
1177, as amended.
Sec. 3. Minnesota Statutes 1998, section 349.12,
subdivision 25, is amended to read:
Subd. 25. [LAWFUL PURPOSE.] (a) "Lawful purpose" means one
or more of the following:
(1) any expenditure by or contribution to a 501(c)(3) or
festival organization, as defined in subdivision 15a, provided
that the organization and expenditure or contribution are in
conformity with standards prescribed by the board under section
349.154, which standards must apply to both types of
organizations in the same manner and to the same extent;
(2) a contribution to an individual or family suffering
from poverty, homelessness, or physical or mental disability,
which is used to relieve the effects of that poverty,
homelessness, or disability;
(3) a contribution to an individual for treatment for
delayed posttraumatic stress syndrome or a contribution to a
program recognized by the Minnesota department of human services
for the education, prevention, or treatment of compulsive
gambling;
(4) a contribution to or expenditure on a public or private
nonprofit educational institution registered with or accredited
by this state or any other state;
(5) a contribution to a scholarship fund for defraying the
cost of education to individuals where the funds are awarded
through an open and fair selection process;
(6) activities by an organization or a government entity
which recognize humanitarian or military service to the United
States, the state of Minnesota, or a community, subject to rules
of the board, provided that the rules must not include mileage
reimbursements in the computation of the per occasion
reimbursement limit and must impose no aggregate annual limit on
the amount of reasonable and necessary expenditures made to
support:
(i) members of a military marching or color guard unit for
activities conducted within the state; or
(ii) members of an organization solely for services
performed by the members at funeral services;
(7) recreational, community, and athletic facilities and
activities intended primarily for persons under age 21, provided
that such facilities and activities do not discriminate on the
basis of gender and the organization complies with section
349.154;
(8) payment of local taxes authorized under this chapter,
taxes imposed by the United States on receipts from lawful
gambling, the taxes imposed by section 297E.02, subdivisions 1,
4, 5, and 6, and the tax imposed on unrelated business income by
section 290.05, subdivision 3;
(9) payment of real estate taxes and assessments on
permitted gambling premises wholly owned by the licensed
organization paying the taxes, not to exceed:
(i) for premises used for bingo, the amount that an
organization may expend under board rules on rent for bingo; and
(ii) $35,000 per year for premises used for other forms of
lawful gambling;
(10) a contribution to the United States, this state or any
of its political subdivisions, or any agency or instrumentality
thereof other than a direct contribution to a law enforcement or
prosecutorial agency;
(11) a contribution to or expenditure by a nonprofit
organization which is a church or body of communicants gathered
in common membership for mutual support and edification in
piety, worship, or religious observances;
(12) payment of one-half of the reasonable costs of an
audit required in section 297E.06, subdivision 4;
(13) a contribution to or expenditure on a wildlife
management project that benefits the public at-large, provided
that the state agency with authority over that wildlife
management project approves the project before the contribution
or expenditure is made;
(14) expenditures, approved by the commissioner of natural
resources, by an organization for grooming and maintaining
snowmobile trails that are (1) grant-in-aid trails established
under section 85.019, or (2) other trails open to public use,
including purchase or lease of equipment for this purpose; or
(15) conducting nutritional programs, food shelves, and
congregate dining programs primarily for persons who are age 62
or older or disabled; or(16) a contribution to a community arts organization, or anexpenditure to sponsor arts programs in the community, includingbut not limited to visual, literary, performing, or musical arts.
(b) Notwithstanding paragraph (a), "lawful purpose" does
not include:
(1) any expenditure made or incurred for the purpose of
influencing the nomination or election of a candidate for public
office or for the purpose of promoting or defeating a ballot
question;
(2) any activity intended to influence an election or a
governmental decision-making process;
(3) the erection, acquisition, improvement, expansion,
repair, or maintenance of real property or capital assets owned
or leased by an organization, unless the board has first
specifically authorized the expenditures after finding that (i)
the real property or capital assets will be used exclusively for
one or more of the purposes in paragraph (a); (ii) with respect
to expenditures for repair or maintenance only, that the
property is or will be used extensively as a meeting place or
event location by other nonprofit organizations or community or
service groups and that no rental fee is charged for the use;
(iii) with respect to expenditures, including a mortgage payment
or other debt service payment, for erection or acquisition only,
that the erection or acquisition is necessary to replace with a
comparable building, a building owned by the organization and
destroyed or made uninhabitable by fire or natural disaster,
provided that the expenditure may be only for that part of the
replacement cost not reimbursed by insurance; (iv) with respect
to expenditures, including a mortgage payment or other debt
service payment, for erection or acquisition only, that the
erection or acquisition is necessary to replace with a
comparable building a building owned by the organization that
was acquired from the organization by eminent domain or sold by
the organization to a purchaser that the organization reasonably
believed would otherwise have acquired the building by eminent
domain, provided that the expenditure may be only for that part
of the replacement cost that exceeds the compensation received
by the organization for the building being replaced; or (v) with
respect to an expenditure to bring an existing building into
compliance with the Americans with Disabilities Act under item
(ii), an organization has the option to apply the amount of the
board-approved expenditure to the erection or acquisition of a
replacement building that is in compliance with the Americans
with Disabilities Act;
(4) an expenditure by an organization which is a
contribution to a parent organization, foundation, or affiliate
of the contributing organization, if the parent organization,
foundation, or affiliate has provided to the contributing
organization within one year of the contribution any money,
grants, property, or other thing of value;
(5) a contribution by a licensed organization to another
licensed organization unless the board has specifically
authorized the contribution. The board must authorize such a
contribution when requested to do so by the contributing
organization unless it makes an affirmative finding that the
contribution will not be used by the recipient organization for
one or more of the purposes in paragraph (a); or
(6) a contribution to a statutory or home rule charter
city, county, or town by a licensed organization with the
knowledge that the governmental unit intends to use the
contribution for a pension or retirement fund.
Sec. 4. Minnesota Statutes 1998, section 349.2125,
subdivision 1, is amended to read:
Subdivision 1. [CONTRABAND DEFINED.] The following are
contraband:
(1) all pull-tab or tipboard deals or paddleticket cards
not stamped or bar coded in accordance with this chapter or
chapter 297E;
(2) all pull-tab or tipboard deals in the possession of any
unlicensed person, firm, or organization, whether stamped or
unstamped;
(3) any container used for the storage and display of any
contraband pull-tab or tipboard deals as defined in clauses (1)
and (2);
(4) all currency, checks, and other things of value used
for pull-tab or tipboard transactions not expressly permitted
under this chapter, and any cash drawer, cash register, or any
other container used for illegal pull-tab or tipboard
transactions including its contents;
(5) any device including, but not limited to, motor
vehicles, trailers, snowmobiles, airplanes, and boats used, with
the knowledge of the owner or of a person operating with the
consent of the owner, for the storage or transportation of more
than five pull-tab or tipboard deals that are contraband under
this subdivision. When pull-tabs and tipboards are being
transported in the course of interstate commerce between
locations outside this state, the pull-tab and tipboard deals
are not contraband, notwithstanding the provisions of clauses
(1) and (12);
(6) any unaffixed registration stamps except as provided in
section 349.162, subdivision 4;
(7) any prize used or offered in a game utilizing
contraband as defined in this subdivision;
(8) any altered, modified, or counterfeit pull-tab or
tipboard ticket;
(9) any unregistered gambling equipment except as permitted
by this chapter;
(10) any gambling equipment kept in violation of section
349.18;
(11) any gambling equipment not in conformity with law or
board rule;
(12) any pull-tab or tipboard deal in the possession of a
person other than a licensed distributor or licensed
manufacturer for which the person, upon demand of a licensed
peace officer or authorized agent of the commissioner of revenue
or director of alcohol and gambling enforcement, does not
immediately produce for inspection the invoice or a true and
correct copy of the invoice for the acquisition of the deal from
a licensed distributor; and
(13) any pull-tab or tipboard deals or portions of deals on
which the tax imposed under chapter 297E has not been paid; and(14) any device prohibited by section 609.76, subdivisions4 to 6.
Sec. 5. Minnesota Statutes 1998, section 609.75, is
amended by adding a subdivision to read:
Subd. 4a. [ASSOCIATED EQUIPMENT.] Associated equipmentmeans any equipment used in connection with gambling that wouldnot be classified as a gambling device, including but notlimited to: cards, dice, computerized systems of betting at arace book or sports pool, computerized systems for monitoringslot machines or games of chance, devices for weighing orcounting money, and links which connect progressive slotmachines.
Sec. 6. Minnesota Statutes 1998, section 609.75, is
amended by adding a subdivision to read:
Subd. 10. [GAME.] A game means any game played with cards,dice, equipment, or any mechanical or electronic device ormachine for money or other value, whether or not approved bylaw, and includes, but is not limited to: card and dice gamesof chance, slot machines, banking or percentage games, videogames of chance, sports pools, pari-mutuel betting, and racebook. "Game" does not include any private social bet.
Sec. 7. Minnesota Statutes 1998, section 609.75, is
amended by adding a subdivision to read:
Subd. 11. [AUTHORIZED GAMBLING ACTIVITY.] An authorizedgambling activity means any form of gambling authorized by andoperated in conformance with law.
Sec. 8. Minnesota Statutes 1998, section 609.75, is
amended by adding a subdivision to read:
Subd. 12. [AUTHORIZED GAMBLING ESTABLISHMENT.] Anauthorized gambling establishment means any premises wheregambling authorized by law is occurring.
Sec. 9. Minnesota Statutes 1998, section 609.75, is
amended by adding a subdivision to read:
Subd. 13. [APPLICABILITY OF DEFINITIONS.] For the purposesof sections 609.75 to 609.762, the terms defined in this sectionhave the meanings given, unless the context clearly indicatesotherwise.
Sec. 10. Minnesota Statutes 1998, section 609.76,
subdivision 2, is amended to read:
Subd. 2. [FELONY GAMBLINGSPORTS BOOKMAKING.] Whoever
engages in sports bookmaking is guilty of a felony.
Sec. 11. Minnesota Statutes 1998, section 609.76, is
amended by adding a subdivision to read:
Subd. 3. [CHEATING.] Whoever cheats in a game, asdescribed in this subdivision, is subject to the followingpenalties:(i) if the person holds a license related to gambling or isan employee of the licensee, the person is guilty of a felony;and(ii) any other person is guilty of a gross misdemeanor.Any person who is a repeat offender is guilty of a felony.A person cheats in a game by intentionally:(1) altering or misrepresenting the outcome of a game orevent on which wagers have been made, after the outcome isdetermined, but before the outcome is revealed to the players;(2) placing, canceling, increasing, or decreasing a betafter acquiring knowledge, not available to other players, ofthe outcome of the game or subject of the bet, or of eventsaffecting the outcome of the game or subject of the bet;(3) claiming or collecting money or anything of value froma game or authorized gambling establishment not won or earnedfrom the game or authorized gambling establishment;(4) manipulating a gambling device or associated equipmentto affect the outcome of the game or the number of plays orcredits available on the game; or(5) otherwise altering the elements of chance or methods ofselection or criteria which determine the result of the game oramount or frequency of payment of the game.
Sec. 12. Minnesota Statutes 1998, section 609.76, is
amended by adding a subdivision to read:
Subd. 4. [CERTAIN DEVICES PROHIBITED.] (a) Whoever uses orpossesses a probability-calculating or outcome-affecting deviceat an authorized gambling establishment is guilty of a felony.For purposes of this subdivision, a "probability-calculating" or"outcome-affecting" device is any device to assist in:(1) projecting the outcome of a game other than pari-mutuelbetting authorized by chapter 240;(2) keeping track of or counting cards used in a game;(3) analyzing the probability of the occurrence of an eventrelating to a game other than pari-mutuel betting authorized bychapter 240; or(4) analyzing the strategy for playing or betting in a gameother than pari-mutuel betting authorized by chapter 240.For purposes of this section, a book, graph, periodical,chart, or pamphlet is not a "probability-calculating" or"outcome-affecting" device.(b) Whoever uses, or possesses with intent to use, a key orother instrument for the purpose of opening, entering, andaffecting the operation of any game or gambling device or forremoving money, chips, tokens, or other contents from therein,is guilty of a felony. This paragraph does not apply to anagent or employee of an authorized gambling establishment actingwithin the scope of employment.
Sec. 13. Minnesota Statutes 1998, section 609.76, is
amended by adding a subdivision to read:
Subd. 5. [COUNTERFEIT CHIPS PROHIBITED.] Whoeverintentionally uses counterfeit chips or tokens to play a game atan authorized gambling establishment as defined in section609.75, subdivision 5, designed to be played with or operated bychips or tokens is guilty of a felony. For purposes of thissubdivision, counterfeit chips or tokens are chips or tokens notapproved by the government regulatory agency for use in anauthorized gambling activity.
Sec. 14. Minnesota Statutes 1998, section 609.76, is
amended by adding a subdivision to read:
Subd. 6. [MANUFACTURE, SALE, AND MODIFICATION
PROHIBITED.] (a) Whoever manufactures, sells, distributes, orotherwise provides cards, chips, tokens, dice, or otherequipment or devices intended to be used to violate thissection, is guilty of a felony.(b) Whoever intentionally marks, alters, or otherwisemodifies lawful associated equipment or gambling devices for thepurpose of violating this section is guilty of a felony.
Sec. 15. Minnesota Statutes 1998, section 609.76, is
amended by adding a subdivision to read:
Subd. 7. [INSTRUCTION.] Whoever instructs another personto violate the provisions of this section, with the intent thatthe information or knowledge conveyed be used to violate thissection, is guilty of a felony.
Sec. 16. Minnesota Statutes 1998, section 609.76, is
amended by adding a subdivision to read:
Subd. 8. [VALUE OF CHIPS OR TOKENS.] The value of chips ortokens approved for use in a game designed to be played with oroperated by chips or tokens, as the term "value" is used insection 609.52, is the amount or denomination shown on the faceof the chip or token representing United States currency. Chipsused in tournament play at a card club at a class A facilityhave no United States currency value.
Sec. 17. [EFFECTIVE DATE.]
Sections 1 to 16 are effective the day following finalenactment.
Presented to the governor April 3, 2000
Signed by the governor April 6, 2000, 3:48 p.m.